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<blockquote data-quote="Maui" data-source="post: 4891666" data-attributes="member: 45037"><p>In my mind RESPONSE sucks. No one I am aware wanted it at least from VP down to couriers. It is wild to go to the same stops sometimes for FO, P1, Ground, Wave 2, and a pup. Seems highly inefficient and I can't imagine anyone would argue otherwise.</p><p></p><p>RESPONSE usually does 200-250K nightly through the Sunrise sort at INDH. Those are packages taken out of Indy and Memphis night sorts (and some, but fewer MEM day sort). Stated goals are to shift capacity and reduce flights, improve international transit to US, and provide a recovery network to reduce WDL.</p><p></p><p>The improved transit for the flight from Paris hub seems to be there to get international sooner. This allows FedEx to offer a much later window (something like +5 hours) for European shippers to get things to the US overnight. These are high yield packages and FedEx has been actively attempting to grow internationally - including the TNT lanes from Asia to Europe. This has been stated on earnings calls forever.</p><p></p><p>And more packages are being trucked to reduce flights. The recovery network part is a joke. Instead more packages are just getting rolled and while IND is mostly performing better in terms of linehaul some of it is because they are just stopping the sort and then rolling P1.</p><p></p><p>Even if RESPONSE is awful we know there is limited sorting capacity at MEM and IND. Expansion takes YEARS and costs $billions. IMO this is an attempt to utilize IND instead of it sitting idle to slow/reduce capital expenses too.</p><p></p><p>So I think LMO + RESPONSE + Combining Express/Ground locations like in Montana is an effort to slow spending for Express even more than it was. LMO takes packages off planes, RESPONSE takes packages off planes and reduces how many have to be processed at night, and Combining locations saves leasing and utility expenses and in the future allowing packages to be delivered by either OPCO in the market.</p><p></p><p>To me the whole idea is reducing capital expenses then ultimately moving as much as practical/possible to Ground using their superior sort capacity (the capacity is more dispersed and the buildings are much more automated with better use of technology than local Express stations).</p><p></p><p>Not sure if any of this made sense to you, but TLDR IMO RESPONSE is trying to reduce CAPEX by using existing hubs and more volume gets moved to FXG ultimately.</p></blockquote><p></p>
[QUOTE="Maui, post: 4891666, member: 45037"] In my mind RESPONSE sucks. No one I am aware wanted it at least from VP down to couriers. It is wild to go to the same stops sometimes for FO, P1, Ground, Wave 2, and a pup. Seems highly inefficient and I can't imagine anyone would argue otherwise. RESPONSE usually does 200-250K nightly through the Sunrise sort at INDH. Those are packages taken out of Indy and Memphis night sorts (and some, but fewer MEM day sort). Stated goals are to shift capacity and reduce flights, improve international transit to US, and provide a recovery network to reduce WDL. The improved transit for the flight from Paris hub seems to be there to get international sooner. This allows FedEx to offer a much later window (something like +5 hours) for European shippers to get things to the US overnight. These are high yield packages and FedEx has been actively attempting to grow internationally - including the TNT lanes from Asia to Europe. This has been stated on earnings calls forever. And more packages are being trucked to reduce flights. The recovery network part is a joke. Instead more packages are just getting rolled and while IND is mostly performing better in terms of linehaul some of it is because they are just stopping the sort and then rolling P1. Even if RESPONSE is awful we know there is limited sorting capacity at MEM and IND. Expansion takes YEARS and costs $billions. IMO this is an attempt to utilize IND instead of it sitting idle to slow/reduce capital expenses too. So I think LMO + RESPONSE + Combining Express/Ground locations like in Montana is an effort to slow spending for Express even more than it was. LMO takes packages off planes, RESPONSE takes packages off planes and reduces how many have to be processed at night, and Combining locations saves leasing and utility expenses and in the future allowing packages to be delivered by either OPCO in the market. To me the whole idea is reducing capital expenses then ultimately moving as much as practical/possible to Ground using their superior sort capacity (the capacity is more dispersed and the buildings are much more automated with better use of technology than local Express stations). Not sure if any of this made sense to you, but TLDR IMO RESPONSE is trying to reduce CAPEX by using existing hubs and more volume gets moved to FXG ultimately. [/QUOTE]
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